Privacy coins: What is Monero (XMR)?

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Similar to Litecoin, Bitcoin, and Ethereum, Monero is an open-source blockchain launched in 2014.

Monero's native token, XMR, is an open-source, privacy-oriented cryptocurrency.

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The blockchain is primarily referred to as an "opaque blockchain," which simply means that every transaction conducted on Monero is anonymous and unidentifiable in nature.

What is Monero (XMR)?

The idea of Monero was first introduced in a whitepaper for a cryptocurrency protocol by CryptoNote.

Monero is an open-source blockchain that was launched with the anonymity factor of decentralisation in mind. Monero has been described as a privacy-oriented blockchain with the goal of valuing privacy above all.

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Monero focuses on delivering total anonymity to its users by letting them transact anonymously by making each transaction private and untraceable.

Monero (XMR) and privacy

While other blockchains like Ethereum allow users to view the amount of crypto sent to others via websites like Etherscan, Monero is built differently and is known to have utilised different privacy-enhancing technologies, including advanced cryptography, to make its transactions untraceable and anonymous.

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Unlike other blockchains, the amount of crypto sent and received, as well as the details of the sender and receiver, are hidden from the public eye, which makes Monero a unique blockchain among its privacy coin competitors.

Monero strives to deliver fast cryptographic transactions without the fear of censorship and public scrutiny. Monero prioritises privacy by deploying a feature called stealth addresses that require each sender to create a one-time address for each transaction.

In addition to this, the blockchain also makes use of ring signatures, which nullifies the possibility of transactions being linked to their original senders.

Monero utilises a mechanism dubbed RingCT, which encrypts transactions and makes them untraceable by third-party viewers or applications.

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XMR

The blockchain's native crypto token, XMR, is used by its users to trade and access additional services on the Monero blockchain.

Learn more about other cryptocurrencies: Quant (QNT), Polygon (MATIC), Evmos (EVMOS), Osmosis (OSMO), Shiba Inu (SHIB)